System x Channel Evaluation - A New Twist

Hopefully most of you are very familiar with IBM's System x Channel Evaluation Program, a popular and long-standing offering that provides hefty rebates to Resellers for successful placement of System x evaluation units.  Note the specific use of the word 'successful'.  In addition to the Reseller rebates, for many years the program also carried a penalty for evaluations that did "not" stick as hoped.  A restock fee of 5% would be assessed on returned product, and (if an extension of the Channel Evaluation had been approved) could climb in successive increments of 5% for each additional approved 30-day period.  This restock fee, though understandable as a filtering mechanism, has -- in my view -- limited use of the Channel Evaluation program due to the associated risk. It wasn't always this way though.  When System x was first announced there were no restock fees at all and many Resellers actively leveraged this program to gain new customers.
 
Well, I have some good news!  IBM recently announced a new 45-day evaluation period on certain models (x3400 M2, x3500 M2, x3550 M2, x3650 M2) that does not impose a restocking fee ... even if the evaluation fails to conclude successfully.  It's important to note that IF the evaluation runs beyond the initial 45-day period that it automatically converts to the traditional 90-day period and is then subject to normal restocking fees. 
 
My recommendation for Arrow ECS Resellers is that you actively embrace this 45-day Channel Evaluation program!  Contact your local IBM System x reps and your iCRBPs and let it be known that YOUR COMPANY is willing to assist them in placing evaluation units.  This is a great way to enhance your customer portfolio and strengthen your System x ties.  Certainly, some of these shorter-tem evaluations will not conclude successfully and your firm (and Arrow) will incur the soft charges of reversing out the transaction via return.  But, some of them will, and the payoffs can be big when they do!
 
Also, it's important to remember that there are several possible outcomes for a Channel Evaluation, all of which will trigger the Reseller rebates:
 
    1) successful placement at the end-user for which the Channel Evaluation was approved
    2) successful placement at another end-user (sold as gently used equipment)
    3) purchase by the Reseller for internal use
 
Please reference IBM Announcement 509-428 for full details regarding the IBM Channel Evaluation Program, or contact me if you wish and I'll be happy to address any questions.  Good luck, and good selling!
 
Sincerely,
 
Richard Allan
Director, IBM System x
Arrow ECS
11545 Wills Road, Suite 100, Alpharetta GA 30092
770-625-7564 (wk), 404-626-4620 (mb)
rallan@arrow.com